Bitcoin (BTC) continued to harass the bears near $25,000 on March 15. This is to encourage macroeconomic data, coupled with concerns about the contagion of the banking crisis.
PPI shows ‘big signs’ for Fed pivot
Cointelegraph Markets Pro and TradingView BTC/USD has recovered from a 24-hour plunge to hit a high of $25,273 on Bitstamp.
The pair responded positively to the latest US Producer Price Index (PPI) data, far below expectations.
Prior to the release, Binance’s order book showed liquidity for the principal bid and ask remained at $22,000 and $26,000 respectively.
“Time will tell if there is enough bidding liquidity to prevent $22,000 from being hit,” says Material Indicators, an on-chain monitoring resource. I have written Part of the accompanying commentary when uploading data to Twitter.
For Cointelegraph contributor Michael van de Poppe, founder and CEO of trading firm Eight, the Fed and Chairman Jerome Powell abandon rate hikes at next week’s decisive meeting. I saw signs of it.
“PPI at 4.6%, expected 5.4%. Massive mistake sees inflation fall. Powell pivot?” queried.
“At least 25bps seems very likely (or no increase due to bank issues). Great sign!”
The PPI joins already strong consumer price index data released the day before. This was accompanied by a nine-month high for Bitcoin as the cryptocurrency took full advantage of the unfolding US banking crisis.
But a day later, the focus was on Europe as European bank stocks stalled due to volatility, especially with Credit Suisse hitting a new record low.
Credit Suisse briefly dropped more than 25% before reversing and surpassing $2.
What? The market currently puts Credit Suisse’s default probability at 47%. what did i miss? pic.twitter.com/Q2MMo0T3LV
— Holger Zschaepitz (@Schuldensuehner) March 15, 2023
“Silicon Valley Bank has about $209 billion in assets. Credit Suisse has about $578 billion in assets,” Genevieve Roch-Decter, CEO of financial analytics firm Grit Capital, commented on the situation.
“This is a much bigger problem during creation.”
Dollar rises, ignores US inflation data
Meanwhile, cryptocurrencies faced headwinds on March 15 from an arguably unlikely source in the form of a surge in the US dollar.
Related: Bitcoin next to $100,000? Analysts focus on ‘textbook’ BTC price move
The US Dollar Index (DXY) hit 105 for the first time since the Silicon Valley Bank collapse on March 1, despite economic data printing showing lower inflation and more favorable conditions for risk assets.
Market commentator Tedtalksmacro asserted that European banking troubles were to blame.
“The banking contagion is now spreading across Europe and with Eurobond yields falling sharply, so does the euro,” part of the tweet read. read.
“EUR accounts for 58% of DXY. So EUR goes down = DXY goes up!”
The DXY measures the dollar’s strength against a basket of major trading partner currencies. Its performance has traditionally been inversely correlated with the crypto market.
The views, thoughts and opinions expressed herein are those of the authors only and do not necessarily reflect or represent the views or opinions of Cointelegraph.
